THE BEST WAY TO MANAGE DOOR LOCKS AT YOUR RENTAL PROPERTY 

Locks are a critical, yet often overlooked, component of ensuring your tenants are safe and feel safe. It’s important that you, as a landlord, have an efficient system so you don’t cut corners at some

THE BEST WAY TO MANAGE DOOR LOCKS AT YOUR RENTAL PROPERTY 

Locks are a critical, yet often overlooked, component of ensuring your tenants are safe and feel safe. It’s important that you, as a landlord, have an efficient system so you don’t cut corners at some point and endanger anyone’s lives or property. With over a decade in the property management business and over 1000 units under management, Nexus highly recommends that our clients switch their key locks over to Kwikset’s Smartkeys. They might cost a little more up front, but this investment in your property will pay dividends over the long term and will allow tenants and landlords alike to sleep much better at night. 

HOW DOES IT WORK? 

With Kwikset’s Smartkey you simply put a new key into the lock, along with a programming key, and the lock will reset itself to fit the key you’ve chosen [ FULL INSTRUCTIONS HERE ]. It can be pretty much any key you’ve got, which can make things easier as well. In this way, you can change your locks easily and in a timely manner each and every time you need to. These will cost a couple bucks more than a standard lock, but it’s well worth it when you need to change those locks, and you really should be changing your locks often.   

LEARN MORE: HOW TO CUT A KEY WITH A NEXUS MAINTENANCE TECHNICIAN 

DOES IT REALLY MATTER? 

As much as safety and key durability is important, the biggest margin of improvement with Smartkeys is the ease with which you can change the lock when the need arises. When a tenant vacates a unit, they’ll typically give you a 30 day notice and upon physically leaving they should be returning ALL of their keys…but it doesn’t always work out that way. If keys are not returned, it is then your responsibility to change those locks, which can be a pain and time consuming. Even if the keys you issued were all returned, you still don’t know if any duplicates were ever made and if those might still be out there [ due to rising rent prices, more and more people are sharing units these days ].  

If you’re changing locks every time a tenant moves out and you multiply that by the 25 years or so that you might own this property, you’re talking about dozens and dozens of lock changes, depending on the size or your rental property. All too often we see landlords decide to keep the locks they’ve had for many years, and then when a tenant leaves, he or she assumes there are no other keys out there and they cut corners by renting to the next tenant without making a change. You could either take the easy step of investing in a Smartkey, or you can cross your fingers and hope that your tenants will be safe.   

LEARN MORE: WHY TENANTS PREFER PROFESSIONALLY MANAGED RENTAL UNITS   

ANOTHER OPTION: TOUCHPADS 

We’re also seeing more and more touchpads that provide a keyless option altogether. These offer the same convenience of being easy to reprogram often. That being said, they’re more commonly used on exterior doors and if that is the case, they’re more susceptible to their one weakness: the dead battery. 

Batteries get low and die pretty quickly, which can be a major inconvenience and is even more likely if you own a property with 4 or more units. These typically still offer the option to use a key, so it’s not like tenants would be locked out, it just makes it more difficult for this to be a more passive (maintenance free) option for you as the landlord. 

LEARN MORE: THE IMPORTANCE OF KEEPING UP WITH RENTAL PROPERTY MANAGEMENT   

CONCLUSION: YOU’RE AN INVESTOR, SO INVEST 

If you got into real estate investment to cut corners and save a couple bucks up front on cheap keys and locks, you’re not going to last very long in this business. You need to provide value for your tenants and continually work to add value to your property. Installing Smartkeys that are easily reprogrammed satisfies both of those central tenets.  

If you’ve got any follow up questions or want to talk real estate investment or property management, reach out to our teams at any of our four franchise locations.  

Nexus Property Management®…your locks and keys, managed!   

WHAT OTHER PEOPLE ARE CHECKING OUT: 

Mick Lefort is the Vice President of Operations for Nexus Property Management®. A National Property Management Franchise that manages all types of rental property from single family homes or condos to large apartment buildings and complexes.

Your Property, MANAGED®

The Real Estate Investing Authority®

Connecting You To Better Living®

You Could Own A Nexus Property Management® Office For Less Than You Think!

Fall River MA Property Management Office

Worcester MA Property Management Office

Pawtucket RI Property Management Office

Natick MA Property Management Office

SHOULD YOU ALLOW TENANTS TO HAVE RECREATIONAL ITEMS ON YOUR PROPERTY? 

When summer comes around it gets hot and we’re all looking for some relief. As rental property owners, we can sympathize with tenants who are trying to beat the heat, but what should you do

SHOULD YOU ALLOW TENANTS TO HAVE RECREATIONAL ITEMS ON YOUR PROPERTY? 

When summer comes around it gets hot and we’re all looking for some relief. As rental property owners, we can sympathize with tenants who are trying to beat the heat, but what should you do if tenants want to put up a small pool? What if they buy a trampoline for Junior’s birthday and now it’s sitting in your yard? What if the tenant’s son is poised to become the next Tony Hawk and all of a sudden there’s a halfpipe behind your driveway (yes, this really happened!)?  

Regardless of your temperament and general flexibility, the correct answer is not dictated by your own disposition but instead by one simple thing: your insurance policy. And we know from over a decade in the game, recreational items on your property are rarely (if ever) covered by typical insurance policies. To allow these items on your property you are taking on a huge risk…so don’t do it. 

WHAT YOU CAN’T CONTROL: INSURANCE 

As alluded to, insurance will not cover you in the event of an injury or worse. If you decide to allow a pop-up pool and something goes wrong, you are liable and your fortune is on the line. You won’t be able to defend any suit brought against you and you’ll have to pay out of pocket. Same with a trampoline…if a kid jumps out and breaks a leg, guess who’s paying for his cast and medical bills? In a perfect world, there will be recreational options nearby, be it a community pool or playground; we want our tenants to be happy and we want them to enjoy living with us, but as with everything, there have to be limits. 

Recently, a Nexus Property Management® technician was responding to a maintenance need at a property and noticed a kiddie pool on the pavement. It was a hot, hot day and there were a handful of 3, 4, and 5 year olds running around enjoying themselves. Because the scene didn’t look very safe, the technician called his general manager, who ran it by the property owner, who insisted it be removed immediately. There’s no doubt that we all want these kids to enjoy themselves as much as possible, but it’s simply not worth the risk.   

LEARN MORE: 4 LEVELS OF LANDLORD ENGAGEMENT: WHICH ONE ARE YOU? 

WHAT YOU CAN CONTROL: YOUR LEASE, YOUR PARTNERS 

Nexus Property Management’s clients don’t have to worry about this quite as much because all of our leases include language forbidding recreational items on the property. If a client puts up a pool without permission, they are in violation of the lease. Of course, this isn’t a cure all, but it’s a good first step as a landlord.   

LEARN MORE: FREE NEXUS TOOLS: ESSENTIAL TOOLS TO MAKE MANAGING PROPERTY EASY 

Your active ability to form a strong relationship with your tenants is also of great value here. Where trust and consistency have been established, you’re much more likely to have tenants ask for permission rather than try to pull one over on you. Again, Nexus clients are at an advantage because professional relationships are highly valued by our teams. Additionally, we provide monthly property inspections which greatly decreases the odds of someone having a pool or trampoline without you knowing about it. 

LEARN MORE: THE BEST LANDLORDS CULTIVATE STRONG RELATIONSHIPS WITH TENANTS   

CONCLUSION 

It’s not enjoyable to tell kids they can’t have fun, but it’s even less enjoyable having to shoulder a wrongful death claim. If your insurance covers pools, trampolines, bike ramps, ziplines, or whatever kids are hopping on these days, that’s great…but the odds are very much against that being the case. When you do break the bad news to your tenants, absolutely be transparent in telling them that it is 100% due to insurance. If you have any suggestions for local recreation or can provide some options for them, that will go a long way in showing that you do indeed care. 

LEARN MORE: A TYPICAL INVESTING EXPERIENCE FOR A TYPICAL NEXUS CLIENT   

Want to learn more, or interested in becoming a client? We encourage you to reach out to our team for any and all of your real estate investment needs.  

WHAT OTHER PEOPLE ARE READING: 

Mick Lefort is the Vice President of Operations for Nexus Property Management®. A National Property Management Franchise that manages all types of rental property from single family homes or condos to large apartment buildings and complexes.

Your Property, MANAGED®

The Real Estate Investing Authority®

Connecting You To Better Living®

You Could Own A Nexus Property Management® Office For Less Than You Think!

Fall River MA Property Management Office

Worcester MA Property Management Office

Pawtucket RI Property Management Office

Natick MA Property Management Office

RENT IS ‘UNAFFORDABLE’...WHO’S TO BLAME? 

Rent prices have never been higher and it’s caused a lot of buzz across the media this summer. There is no doubt that landlords across the country have elevated their rent prices, but are they the ones to blame? Possibly because it’s coupled

RENT IS ‘UNAFFORDABLE’...WHO’S TO BLAME? 

Rent prices have never been higher and it’s caused a lot of buzz across the media this summer. There is no doubt that landlords across the country have elevated their rent prices, but are they the ones to blame? Possibly because it’s coupled with states’ eviction moritoria coming to an end in recent months, or government subsidized rent relief drying up, but whatever the reason, it’s crystal clear that landlords have become easy scapegoats for the inequities that exist in housing. 

LEARN MORE: RENTS ARE SOARING IN SOUTHERN NEW ENGLAND   

LOOK NO FURTHER THAN THE BLOATED SALES MARKET 

Nexus Property Management’s VP, Greg Rice, wanted to break down this current issue with a simple comparison of a typical rental property that the company manages. Although it’s become trendy to paint the property owner as the big bad wolf, the reality is that he or she is the last one in line and they themselves are just trying to stay afloat. The true culprit is the exorbitant sales market. As property owners look for ways to keep up with the inflated prices they’re paying to buy property, they are inevitably left with few options other than raising rent. 

LEARN MORE: YOUR TAX ASSESSMENT IS ABOUT TO SKYROCKET…WHY??? 

34 FRANKLIN STREET, WOONSOCKET, RHODE ISLAND 

This 4 unit property in one of Southern New England’s once mighty industrial cities has been owned by Rice and managed by Nexus Property Management since 2016. For comparison’s sake, we’re going to look at price for the building, down payment needed, rent rolls and total income, and contrast that to expenses that come from operating costs. The table below shows those numbers for the property for 2016:   

Let’s begin with the obvious: a 36.33% return on your investment (after one year) is incredible and it’s why real estate investment is so attractive. However, these figures are based on a best case scenario with full tenancy and no major issues arising (which is not the reality we live in). This table exists for the sake of comparison, so we had to leave those variables. But there’s no doubt that these rent prices were affordable and fair and in the end it was a win-win for tenants and the owner alike. With four unit apartments, we typically advise clients that 3 units will cover your regular expenses and the fourth will likely provide passive monthly income for you or help you weather the storm should an expensive issue arise. As you can see, this holds true for this property. It’s a solid investment. 

But a lot has changed since 2016. The table below shows how expenses have changed. You can see that total expenses have doubled in the past 6 years!!! (from $1,775 to $3,455 a month). Over that same time period, rent would need to be added to keep up. The average out there is about 10% a year. The rent here increased $1,830 total over those 6 years, which is an increase of 60.5%...in line with those averages. 

With 60 percent more income coming in that 6 years ago, the overall profit is just about the same ($150/month). At a time when more and more people are working from home and there is more wear and tear on rental properties than ever, that amount is negligible at best. The main point should be clear…landlords are not getting rich by hiking up rents…they’re simply trying to keep up themselves.   

LEARN MORE: WHY NEXUS FRANCHISES SUCCEED IN SOUTHERN NEW ENGLAND CITIES   

THE COST THAT DOESN’T COME UP IN THE NUMBERS: STRESS 

Any investor would jump at the chance to take home 36% on $40,000. It’s a no-brainer. Six years later, that opportunity no longer exists. 16.8% is still a great return, but you need $100,000 to play right now and your margin for error has become razor thin. Where a vacancy in 2016 that took you 2 months to plug meant $1700 lost, today you’re looking at possibly $3000 out the window. Until the housing market corrects itself, there’s just too much stress on the system for the typical investor. 

Those investors are being asked to take much more risk. They’re being asked to take on far more debt. They’re having to deal with a 100% increase in operating costs. And at the same time, they’re being painted as the bad guys. The volatility of the market has created this scenario and both tenants and property owners are bearing the brunt of the hardships but its the landlord alone who has been vilified.   

LEARN MORE: IS THE RHODE ISLAND HOUSING MARKET SHOWING SIGNS OF IMPROVEMENT? 

SOLUTIONS 

When margins are thin and risk is high you’ve got two main options: 

1. SIT OUT AND WAIT FOR THINGS TO CHANGE:  2016 was clearly more attractive than the current investment environment, so why not just wait for those conditions to return.  You could…but the reality of prices coming back to where they were is slim and markets rarely work that way. Normalcy should return but the days of paying $41,250 per unit are long gone. If you opt to take some time away be sure to keep an eye on listings and watch closely to see what happens with that price per unit ratio. It’s at $100,000 currently, which is unaffordable for most.  As it creeps back down toward $65-70K, you should start stretching and preparing to jump back in. 

2. HIRE OR CONSULT A REAL ESTATE INVESTMENT PROFESSIONAL:  The huge advantage that companies have over individuals is their ability to take advantage of scale. In this case, you might be sitting back and checking listings passively, but they’re actively scouring and looking for the best deals for their clients (see Nexus’ Nvest buyers’ agency program). A reputable professional will have their finger on the pulse and will see that wave of change far sooner than individual investors swimming alone. 

LEARN MORE: A TYPICAL INVESTING EXPERIENCE FOR A TYPICAL NEXUS CLIENT   

Want to learn more, or interested in becoming a client? We encourage you to reach out to our team for any and all of your real estate investment needs.    

WHAT OTHER PEOPLE ARE READING: 

CHECK US OUT ON SUBSTACK: 

https://realestateislife.substack.com 

Mick Lefort is the Vice President of Operations for Nexus Property Management®. A National Property Management Franchise that manages all types of rental property from single family homes or condos to large apartment buildings and complexes.

Your Property, MANAGED®

The Real Estate Investing Authority®

Connecting You To Better Living®

You Could Own A Nexus Property Management® Office For Less Than You Think!

Fall River MA Property Management Office

Worcester MA Property Management Office

Pawtucket RI Property Management Office

Natick MA Property Management Office

THE BEST TYPE OF COUNTERTOP FOR YOUR RENTAL PROPERTY 

You’re a property owner and you need to replace counter space in your rental property. Are you gonna get the cheap stuff from Lowe’s? The expensive stuff from Home Depot? With so many options out there, where

THE BEST TYPE OF COUNTERTOP FOR YOUR RENTAL PROPERTY 

You’re a property owner and you need to replace counter space in your rental property. Are you gonna get the cheap stuff from Lowe’s? The expensive stuff from Home Depot? With so many options out there, where do you begin? First off, make sure you have the right mentality going into the purchase. Your priority is to find a surface that is feasible, efficient, and durable.  

At Nexus Property Management®, we manage over 1200 units for our clients and have been at it for over a decade. Here are our suggestions regarding countertops and their relative values based on years of maintenance and unit turnover experience:   

OPTION 1: LAMINATE 

ADVANTAGES:  

DISADVANTAGES: 

Laminate is designed to look like the stone that people want but it is simply a printed image on a surface that is solid enough to make an effective countertop. At $100/$200 for upwards of 6-12 ft, laminate is highly affordable and can be installed by individuals without much hassle. If taken care of properly, and properly installed, laminate is a dependable surface that can last between 10 and 20 years. It is far less durable than other options, but its replacement cost is also far less. When it comes to rental properties, we highly suggest going with laminate countertops, not just because they’re cheaper, but because they add appropriate value, can be installed quickly (decreasing length of vacancy), and generally hold up well.   

OPTION 2: WOOD 

ADVANTAGES:  

DISADVANTAGES: 

Let’s be direct: wood is a terrible choice for a countertop. At $25/sq. ft. (on average), it’s relatively affordable but not a great value because of a high likelihood of it deteriorating or needing significant repair. Wood is meant to be a structural or background material. Think about the way we construct roofs: wood, then some more wood, then we cover it with water proofing and shingles. It needs to be protected from water if it is going to last…hell…even the wood in trees is protected by bark!!! So why would we ever consider wood as our primary kitchen surface? We wouldn’t…and you shouldn’t either. It’s just not practical. 

OPTION 3: GRANITE 

ADVANTAGES:  

DISADVANTAGES: 

Granite is great. It’s solid stone, cut and cared for, that would be perfect for any single family home, condo, townhouse, or luxury loft space, but it’s probably more than what’s needed for a typical rental property. At $40/50 sq. ft. (on average), a 30 sq. ft. counter space is going to cost you $1,500 just for the slab…nevermind the added costs of delivery, install, any special cuts needed, etc.  Granite is highly durable and very attractive but more likely than not, the cost, labor, and time needed is not going to match the goals you have with your rental property. For very different reasons than the wood option, granite is not the most practical choice for a real estate investor. That being said, if you’re replacing the countertop in your own home, start with granite.   

OPTION 4: QUARTZ 

ADVANTAGES:  

DISADVANTAGES: 

Quartz is the most durable option out there. It’s made from crushed stone with a resin and then cut and polished to create an indestructible slab. But at $60/70 sq. ft. it’s very expensive. Using the same average size counter (about 30 sq. ft.) you’re looking at over $2,000 just for the stone top. Unlike granite, quartz countertops are also going to require a primer to be added periodically to maintain its original quality. But…you don’t have to worry about it chipping or breaking down the line. It’s costly but an investment that will keep value over time. For your own home, possibly worth it, but for a rental property it’s just too much. If you’ve got thousands of dollars to spend on countertops, there are likely better ways you can add value to your tenants’ lives.   

LEARN MORE: THE BEST FLOORING OPTIONS FOR YOUR RENTAL UNIT   

CONCLUSIONS 

When making any choices for your rental property, you want to do what most aligns with your goals and priorities. In our experience, the countertop option that most often makes the most sense to property owners is the laminate option. It’s not as durable as some of the higher end options, but minor bumps and bruises are the nature of rental property and replacement of items should be expected and anticipated. And even at that, laminate counters can easily last you a decade. At a couple hundred bucks, the value vs. the cost savings when compared to granite or quartz is the reason so many of our clients (wisely) choose a quality laminate countertop.   

Our Nexus Property Management® maintenance teams have 1000s of hours of experience in rental units providing solutions for issues as common as mold issues, heating failure, broken water pipes, fire coding, infestation, and so much more. With 100s of clients across the country we are always looking for proactive best practices to nip all issues in the bud.    

Want to learn more, or have additional questions about anything pertaining to rental property maintenance and construction? We encourage you to reach out to our team.  

WHAT OTHER PEOPLE ARE READING: 

CHECK US OUT ON SUBSTACK: 

https://realestateislife.substack.com 

Mick Lefort is the Vice President of Operations for Nexus Property Management®. A National Property Management Franchise that manages all types of rental property from single family homes or condos to large apartment buildings and complexes.

Your Property, MANAGED®

The Real Estate Investing Authority®

Connecting You To Better Living®

You Could Own A Nexus Property Management® Office For Less Than You Think!

Fall River MA Property Management Office

Worcester MA Property Management Office

Pawtucket RI Property Management Office

Natick MA Property Management Office

IS FACEBOOK USEFUL FOR GROWING YOUR BUSINESS ONLINE?  

Facebook is the most popular social network in the world with over 2.9 billion monthly users and over 240 million in the U.S. alone. But is Facebook an effective tool that can strengthen your business? Well…it

IS FACEBOOK USEFUL FOR GROWING YOUR BUSINESS ONLINE?  

Facebook is the most popular social network in the world with over 2.9 billion monthly users and over 240 million in the U.S. alone. But is Facebook an effective tool that can strengthen your business? Well…it used to be. In the early years of Facebook the goal was to bring people together to increase networking opportunities. As you may recall, it began on college campuses as an effort to meet and connect with other students, but the goals and objectives have since changed quite considerably as the money has flowed it. Social Media companies and developers are interested in nothing more than finding a way to convince you to stay on their product as long as possible for the benefit of advertisers. That does not create an environment for you to cultivate and nurture strong business relationships.    

[ LEARN MORE: HOW THE FACEBOOK ALGORITHM WORKS AND HOW TO OUTSMART IT]   

Today, Facebook is so polluted, so toxic, and so divisive that it’s just a reservoir for noise that you’re already interested in or familiar with. If your goal is to discover something new, get off of Facebook. If your goal is to get discovered (as a business), get off of Facebook. Spend your time and effort elsewhere. You can do better: SEE PART II   

HOW POPULAR IS FACEBOOK? 

Facebook is super popular, there is no doubt about it. Without even branching off and discussing the companies it controls (i.e. Instagram, WhatsApp), almost half of the world is on Facebook. More incredibly, users average a whopping 2 hours and 27 minutes on Social Media daily, most of it on Facebook. In countries with emerging markets, which not so coincidentally have a younger population, daily consumption of over 4 hours is common (see Nigeria and the Philippines).  

So, if everyone is at the mall, why wouldn’t you want to open your store there? If almost ¾ of all Americans are active Facebook users, why wouldn’t it make sense to advertise and be active there? 

HOW USEFUL IS FACEBOOK? 

Well, to stick with the mall analogy, think about how a mall works.  You enter one of several main entrances and then move through common areas that expose you to all the stores you could hope for. While cruising up the escalator (where your eyes are intentionally free to wander), you see countless outlets on multiple floors as you plan which stores to visit before making your way to the pet store on the first floor to check out the puppies like you’ve gotten in the habit of doing. This is the way it has worked for years. 

But in the Facebook version, there aren’t common entrances and you don’t move through common areas. You enter every store directly from the outside and you’re never exposed to those other options or ideas that weren’t on your mind before you came in. There’s one back exit and it goes to a store very similar to the one you’re in currently. And the pattern continues. You exit the next store and find another that is very similar to the one you were just in. The mall knows that you like this stuff, so they’re just gonna keep hitting you with more of the same…and you’ll likely stay a while (hopefully not up to 4 hours). Someone help you if you chose to go to that pet store with the skateboarding dog first! 

If you’re in real estate, and you want others to find you on Facebook, be aware that you’re inevitably connected to all those similar stores around you. For every one real estate company (yours being one of them) people can access, they’re going to see 4 or 5 more just like you. People came looking for a business like yours and Facebook wants them to stay, so the more the merrier…merrier for them, not for you. 

[LEARN MORE: 5 REASONS WHY FACEBOOK IS BAD FOR SMALL BUSINESSES] 

YOU’RE SIMPLY NOT GOING TO REACH NEW CLIENTS 

Facebook’s algorithm closes any webs of opportunity that used to exist on the platform. If you’re in real estate, it’s very likely that your newsfeed is overrun, or soon will be, by more and more real estate related stories, issues, and contacts. Instead of gaining a platform to reach new clients, you’ll instead fixate on seeing what the competition is up to and trying to keep up with them. In the same way soccer mom’s create a fake persona online for other soccer mom’s to see, you’ll risk wasting time that should be geared toward creating value for your business and your clients, on building up your Facebook reputation…which no potential clients are going to see anyway. 

[LEARN MORE: STOP COMPARING YOURSELF TO WHAT YOU SEE ON SOCIAL MEDIA] 

SO WHAT’S THE SOLUTION 

At Nexus Property Management®, we are indeed on Facebook, but we use assisting software to post and manage our accounts so we’re minimizing the amount of time geared toward social media. But instead of using it directly to drum up business, we instead use it as a vehicle to export content that we already create and circulate in other areas. Next week’s article will explicitly dive into what that looks like.   

[UPDATE: NEXT WEEK’S ARTICLE (FACEBOOK PART 2)] 

NEXT STEPS 

Stay tuned for next week’s article, “IF NOT FACEBOOK, HOW DO YOU GROW YOUR BUSINESS ONLINE?” …and as always, don’t hesitate to reach out to our team if you have any questions or interest in becoming a Nexus client, an Nvestor, or want to learn more about Franchise Opportunities. 

WHAT OTHER PEOPLE ARE READING: 

CHECK US OUT ON SUBSTACK: 

https://realestateislife.substack.com 

Mick Lefort is the Vice President of Operations for Nexus Property Management®. A National Property Management Franchise that manages all types of rental property from single family homes or condos to large apartment buildings and complexes.

Your Property, MANAGED®

The Real Estate Investing Authority®

Connecting You To Better Living®

You Could Own A Nexus Property Management® Office For Less Than You Think!

Fall River MA Property Management Office

Worcester MA Property Management Office

Pawtucket RI Property Management Office

Natick MA Property Management Office

WHAT ARE YOUR STRENGTHS AND WEAKNESSES AS A REAL ESTATE INVESTOR? 

HOW PROPERTY MANAGERS HELP BRIDGE YOUR GAPS 

Businesses are always assessing their internal strengths and weaknesses and making organizational decisions accordingly…but

WHAT ARE YOUR STRENGTHS AND WEAKNESSES AS A REAL ESTATE INVESTOR? 

HOW PROPERTY MANAGERS HELP BRIDGE YOUR GAPS 

Businesses are always assessing their internal strengths and weaknesses and making organizational decisions accordingly…but how often do we do the same as real estate investors? Because we’re typically acting as a single entity (working alone), we’re less likely to analyze our performance or choices with any formality or in thinking about accountability, but recognizing and playing to your strengths can have major advantages. Likewise, failing to recognize your weaknesses can create major drag on your profits and lead to derailing headaches and hardship. Limiting these negative effects begins with intentional recognition and thinking about your abilities, and most importantly, aligning those with your goals. 

IT ALWAYS STARTS WITH YOUR GOALS 

What is it that you want real estate investment to do for you? What do you expect your investment to yield? If the goal is cash now, you’re in the wrong business. If the goal is big cash in the future and passive monthly income along the way, real estate investment is where you belong. Apart from what you get out of it, you also need to consider what you can put into it. If you work a full-time office job and have two young kids at home, you’re in a far different place than someone who runs a consulting firm whose kids are both in college. Time and flexibility are important factors to always keep at the forefront when making major decisions. 

Recently, a new investor came to us and found that the money he’d put aside to buy his first investment property wasn’t going to be enough. Prices are way up, lenders are asking for larger down payments, and insurance rates are rising as well. The barriers to entry have never been higher. Some might advise that you look into REITs (Real Estate Investment Trusts) instead while others might recommend just waiting until the market settles. This investor stayed true to his goals and his family situation and took a different approach: He bought a troubled property to flip with the goal of doubling his future downpayment on a long term investment property. As a teacher, he has lots of time and flexibility over the summer months and can make this happen. He didn’t change his goals from creating long term wealth, he just had to take a sidestep to create more flexibility, and it aligned with where he is in life. 

[ LEARN MORE: TOP 3 MISTAKES INVESTORS MAKE WHEN BUYING A RENTAL PROPERTY ] 

STRENGTHS AND WEAKNESSES 

We all have strengths and weaknesses and how they play toward real estate investment will obviously vary. Common strengths we see in many of our most successful clients include networking abilities, experience budgeting, direct communication style, computer literacy, and organized book and record keeping. Common weaknesses include networking inabilities and difficulty working with people, inexperience budgeting, poor communication, technology illiteracy, and poor organization.  Yes…I just flipped those, I apologize…but the point should be clear: what are strengths for many of us are weaknesses for others and vice versa. For this reason, it just doesn’t make a lot of sense to go it alone. Finding a professional to help augment your strengths and fill the gaps where you aren’t as strong is a no-brainer.    

[ LEARN MORE: WHICH TYPE OF LANDLORD ARE YOU? ] 

YOU’RE ALWAYS AT A DISADVANTAGE WHEN YOU FLY SOLO 

Let’s be very direct: it’s in your best interest to hire a professional property management company to help maximize your returns and guide your investments along the way. Even if you just hire one to get you off your feet, it makes a lot of sense. There are a handful of professional athletes who eventually decide to represent themselves, but none of them start out without an agent. Why would you? Like a professional athlete, the very beginning of your career is the most risky and challenging in terms of financial decisions. People don’t bat an eye when thinking about working with a financial expert when it comes to their 401K or 403B, but there’s still a bit of hesitancy on the real estate side.  

A reputable property manager helps you navigate the field that they plow day in and day out. For a minimal charge, you get a wingman that brings experience to the table and can help bridge the gap on any of those weaknesses you might have. Lacking flexibility and time? Without a property manager your best bet is to wait until life changes for you. With a property manager, you’re good to start chasing your goals right away. A property manager will help you bridge that gap between what you want and what you have. 

[ LEARN MORE: HIRING THE BEST PROPERTY MANAGER FOR YOU: FIND A SPECIALIST, NOT A JACK OF ALL TRADES ] 

LOOKING FOR A DOER, A COACH, OR A CLEANUP CREW? 

There are typically four general types of new clients that come to us after already embarking on their own: 

TYPE 1: EXPERIENCED BUT LACKING TIME AND FLEXIBILITY 

These investors know what they want to do and how they want to do it, they just don’t have the time or resources. They’ve played the game and have wisely come to the conclusion that the best choice is to hire out. They’ll let our team know exactly what they want done…and we’ll execute accordingly. 

TYPE 2: LOOKING FOR A COACH TO PARTNER WITH 

Most commonly, investors seek us out for our expertise. We can do what they want when they want (like Type 1 above), but they also want to know what our team recommends and how we come to those decisions. Because they’re thinking long term, they want to learn the game, not just play it. They trust our decisions and actively use us to handle issues that are weaknesses for them.  

TYPE 3: I TRUST YOU GUYS…DON’T BOTHER ASKING 

These clients have 100% trust in us and they have no hand in management or decision making. “Don’t bother asking…if you think it’s the right thing to do, do it…when it’s time to evict, go ahead and evict…if there’s maintenance needed, take care of it…just send me my check at the end of the month”. We’re happy to have the capacity to meet the expectations of these Type 3 clients. We appreciate their trust. 

TYPE 4: I NEED A CLEANUP CREW!!! 

These are the clients who started on their own and failed to assess their own weaknesses. They might have 4 or 5 buildings and they’re all going under so now they’re looking for a professional to help dig them out. And we will. But often it’s expensive and relationships are tough to establish because the client has been doing it “wrong” for so many years and is reluctant to change when money is so tight. 

[LEARN MORE: THE MATH AND PROFITS BEHIND A TYPICAL NEXUS CLIENT EXPERIENCE ] 

IN SUMMARY: 

A reflective conversation with yourself about your strengths and weaknesses as a landlord and property owner is essential to performance that will maximize your own profits. Very often, hiring a professional property manager is an investment that will pay dividends almost immediately, and most certainly in the long run. Whether you’re just starting out and you know finding vendors and establishing relationships with people in the business is going to be hard for you, or you’re already managing your own 6 units (3 of which are vacant, 1 needing an eviction, with a leaky roof to boot), hiring an expert in the field can minimize losses and bridge the gaps to your strengths. 

If interested in learning more about the opportunities that professional property management can bring to you and your properties, contact our Nexus Property Management® team at any of our four New England locations. 

NEXUS PROPERTY MANAGEMENT® FRANCHISE OPPORTUNITIES AVAILABLE 

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CHECK US OUT ON SUBSTACK: 

https://realestateislife.substack.com 

Mick Lefort is the Vice President of Operations for Nexus Property Management®. A National Property Management Franchise that manages all types of rental property from single family homes or condos to large apartment buildings and complexes.

Your Property, MANAGED®

The Real Estate Investing Authority®

Connecting You To Better Living®

You Could Own A Nexus Property Management® Office For Less Than You Think!

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